Consolidating balance sheet minority interest
It’s very easy when a parent (Mommy) and a subsidiary (Baby) use the same format of the statement of financial position – you just add Mommy’s PPE and Baby’s PPE, Mommy’s cash and Baby’s cash balance, etc. It’s a full IFRS learning package with more than 40 hours of private video tutorials, more than 140 IFRS case studies solved in Excel, more than 180 pages of handouts and many bonuses included.
If you take action today and subscribe to the IFRS Kit, you’ll get it at discount! ” and subsidiaries’ accountants must fill them up along with preparing own financial statements.
Therefore, when a group controller calls you every five minutes to remind you the consolidation package, you’ll know why!
In our case study, combined numbers looks as follows: Of course, there are some strange and redundant numbers, for example both Mommy’s and Baby’s share capital, but we haven’t finished yet!
Measure NCI at its proportionate share of Baby’s net assets.
Please note here that in the above statements of financial position, .
Below there are statements of financial positions of both Mommy and Baby at 31 December 20X4.
Then we need to recognize any non-controlling interest and goodwill.If you take action today and subscribe to the IFRS Kit, you’ll get it at discount! But when you need to deal with more complex situations, then you can forget or omit the things very easily. However, to make you happy, you can find the same case study solved “by the exam-style” in the attached excel file that you can download in the end of this article. But in most cases, there is lots of issues or circumstances that you need to take into account and exactly their significance and amount makes it all difficult. For example: I can go on and on, but I don’t want to discourage you.However, if you need to know more about all these issues, I have covered them fully in my premium learning package the IFRS Kit, so please check out if interested.However, when you look at both parent and subsidiary as at 1 company, which is the purpose of consolidation, then you find out that there’s no transaction at all.In other words, group has not performed any transaction from the view of some external user.